Rightmove: House prices are overvalued

Despite this, a further finding of the survey is that across the UK consumers feel prices in their local area are overvalued and need to come down.

Rightmove director Miles Shipside said: "Our Q1 survey measured the highest proportion of home movers recorded to date forecasting that prices would be lower in 12 months’ time.

"That was the position of a third of them then, but now that proportion sharing that view has dropped to a quarter."

Each quarter for the past two years Rightmove has charted whether the home-moving public believe prices will increase, decrease or stay around the same.

For this latest survey the public were also asked whether they believed prices in their area were overvalued, undervalued or
about right. The results reveal that just under half (48%) of respondents believe prices in their local area are overvalued, with just 15% of the opinion that they are too low.

In London (60.8%), the South East (51.7%) and the South West (52.7%) the proportion of those feeling prices were overvalued were in the majority.

Shipside said: "There is a growing sense that many homes coming onto the UK housing market are priced too high and this is borne out by the views expressed in this survey.

"We now have a situation where half of the UK public feel house prices are too high, yet three quarters of the same public are expecting prices to either stay the same or increase over the next 12 months.

"This suggests the prospect of a market stand-off and rising unsold stock levels if sellers don’t wise up to the house price views of their target market."

One thought on “Rightmove: House prices are overvalued”

I’ve been looking for a flat in NW London for the last 3 months now and even in that time I have noticed that house prices have increased. Confidence has definitely increased an property in high demand areas have been reaching an d exceeding asking prices. Prices in Londonj are definitely back to their peak!